Why is it called limited company?

A limited liability company, referred to as a limited liability company for short, refers to an economic organization registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration and established with the contribution of less than 50 shareholders. Each shareholder shall bear limited liability to the company to the extent of the subscribed capital contribution, and the company as a legal person shall bear full liability for the company's debts with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies.

Limited company is the most important organizational form for Chinese enterprises to implement corporate system, which refers to registration according to the Regulations of the People's Republic of China on the Administration of Company Registration. Its advantage is that the establishment procedure is relatively simple, and there is no need to issue an announcement or account number. In particular, the company's balance sheet is generally not open, and the company's internal institutions are flexible. Its disadvantage is that it is impossible to issue shares publicly, and the scope and scale of funds raised are generally small, which is difficult to meet the needs of large-scale production and operation activities. Therefore, the form of limited liability company (limited company) is generally suitable for small and medium-sized non-joint-stock companies.

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Matters needing attention of Limited Company:

After the company has gone through the industrial and commercial registration, its name is protected by law, and the name approved by the administrative department for industry and commerce should be used in its daily business activities. You can't change, add or subtract any words.

According to Article 10 of the Regulations of the People's Republic of China on the Administration of Company Registration: "The registered items of a company shall comply with the provisions of laws and administrative regulations. If it does not comply with the provisions of laws and administrative regulations, the company registration authority will not register it. " Article 11: "The company name shall conform to the relevant provisions of the state. A company can only use one name. The company name approved and registered by the company registration authority is protected by law. "